Ethereum Price Forecast: ETH Could Trade Range-Bound for Months After Hitting Oversold Levels

ETH found strong support at $1,380 during the crash triggered by Trump’s official announcement earlier this month and has temporarily bounced off this level.

Market sentiment has improved slightly in the past few days as the Fear and Greed Index climbed back from a record low of 15 to 29 at the time of writing.

Today, the Chairman of the Federal Reserve, Jerome Powell, is expected to give a speech at the Economic Club of Chicago.

His comments will be scrutinized as this would be the second time that Powell will make a public appearance after Trump announced his plan to raise tariffs on all imported goods.

This could result in higher volatility during today’s trading session as Powell’s comments on interest rates or how the economy could fare in these conditions could move the market’s needles.

Ethereum is Still the Largest DeFi Chain

Despite ETH’s recent recovery, its annual performance has been disappointing as the token has lost more than half of its value in 2025.

Apart from the overall weakness that cryptocurrencies have faced in a relatively unfavorable macro backdrop, Ethereum is also struggling to stay competitive as rivals like Solana (SOL) and Sui (SUI) have offered developers cheaper fees and faster transaction execution speeds.

The upcoming Pectra upgrade could have significant implications for the network’s performance but critics have stated that it fails to address the fundamental hurdles that have prevented Ethereum from solidifying its stance as the king of the smart contracts space.

For now, its DeFi ecosystem is the largest in terms of total value locked (TVL) at $46.8 billion. Solana and BNB Chain are the closest, yet still fairly distant, competitors with TVLs of $6.8 and $5.2 billion respectively.

ETH Could Rise to $1,900 After Consolidating

Ethereum’s recent downturn has pushed the price to its lowest level in nearly two years. History shows that once the Relative Strength Index (RSI) has touched and bounced off oversold levels, the price has spent a few months in consolidation before making its next move to higher ground.

However, the last time this happened, the price made a higher low, meaning that Ethereum was on an uptrend at that time.

This time, the situation is different as ETH has made a lower low after spending several months dropping like a rock.

In this scenario, the most likely outcome of a consolidation period is not a move higher, but actually the opposite.

Even though the RSI has hit oversold levels, in the broad context of the price action, this could be a temporary pause for the market to resume its downtrend.

Consolidation periods occur as market participants digest the latest developments and assess the state of the market before deciding what the trajectory of the price should be next.

Looking at ETH’s yearly volumes, the second-highest point of control (POC), which is the area with the most volume traded, stands at the $1,900 level.

The price could recover to this level in the next few weeks as traders retest the market’s interest for ETH near a control area.

If the price fails to move above this area, it is highly likely that it can drop to lower lows, meaning that the odds of seeing ETH hitting the $1,000 this year are still quite high.

In contrast, if bulls manage to push the price above the $2,000 level, it would mean that ETH has a good chance to rise to the current POC – which stands at $2,700.

Macroeconomic conditions and market sentiment favor a bearish outlook at this point but selling volumes at $1,300 were fairly low, meaning that ETH could have hit a local bottom.

However, as history suggests, the token could trade range-bound between $1,300 and $1,700 for a few months before making its next big move.